The European Fee (EC) has authorised a €450m ($518m) subsidy from the Czech authorities for onsemi to determine a brand new silicon carbide (SiC) semiconductor fabrication facility in Rožnov pod Radhoštěm, Czechia.
The funding types a part of the US-based chip producer’s deliberate €1.64bn funding and is predicted to allow the completion of the plant by 2027.
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Upon completion, the Rožnov pod Radhoštěm plant is predicted to turn out to be the primary built-in SiC gadget manufacturing web site of its variety within the European Union (EU).
The power will deal with all levels of SiC gadget manufacturing, from crystal development to completed semiconductors.
In June 2024, onsemi confirmed plans for a multi-year brownfield funding in Rožnov pod Radhoštěm.
The corporate’s current native operations embody silicon crystal development and wafer manufacturing. The brand new facility will construct on this basis with vertically built-in SiC manufacturing capabilities.
SiC energy gadgets are utilized in functions together with electrical automobiles, renewable vitality techniques, fast-charging infrastructure, and industrial energy electronics, the place their increased voltage tolerance and effectivity are key.
The undertaking is meant to strengthen the EU’s semiconductor worth chain and scale back reliance on non-European provide sources.
onsemi’s proposed plant was submitted for state support approval beneath Article 107(3)(c) of the Treaty on the Functioning of the EU, which permits governments to assist financial developments beneath particular circumstances.
The EC assessed that public funding was required for this funding to proceed inside Europe, citing a funding hole that will have in any other case prevented onsemi from selecting an EU location.
The Fee concluded that the measure helps financial growth by permitting the creation of an built-in manufacturing facility for SiC gadgets in Europe. It additionally decided that the help acts as an incentive, as onsemi wouldn’t undertake this funding in Europe with out public funding.
EC Clear, Simply and Aggressive Transition Government Vice-President Teresa Ribera mentioned: “This undertaking will enhance the resilience of producing industries and scale back exterior dependency for semiconductors.
“The chips that can be produced at this plant are essential for inexperienced applied sciences, comparable to electrical automobiles and charging stations, that are important for Europe’s vitality transition and inexperienced initiatives.”
Below the settlement with Czech authorities, onsemi has dedicated to a number of necessities. The corporate will guarantee a broader impression on the EU semiconductor ecosystem.
It is going to contribute to the event of next-generation 200 mm SiC expertise. onsemi may even prioritise orders throughout provide shortages as specified within the European Chips Act.
As well as, the corporate will deploy workforce schooling and expertise programmes.
onsemi has additionally agreed to share any earnings exceeding present forecasts with Czechia.
In January 2025, onsemi submitted an software for its Rožnov pod Radhoštěm facility to be recognised as an built-in manufacturing web site beneath the European Chips Act. This designation course of is separate from state support evaluation however obliges compliance with additional EU coverage necessities.
The choice marks the eighth such approval by the Fee beneath ideas set by the European Chips Act Communication, which entered into pressure in September 2023. Earlier approvals thus far quantity to a cumulative €12.8bn in state support supporting semiconductor tasks throughout EU member states.
onsemi said: “We welcome the European Fee’s determination after an intensive and cautious overview. This can be a optimistic step that displays the significance of onsemi’s applied sciences and our function in supporting the European Union’s management in superior, energy-efficient energy semiconductors.”
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